Naqi Water Company, listed on the Saudi Stock Exchange (Tadawul), announced the signing of a new strategic contract aimed at developing its industrial infrastructure. The company entered into an agreement with Middle East Machinery Factory Limited (MEMCO) for the purchase, supply, and installation of advanced industrial elevators. The total value of this contract is approximately SAR 2.67 million, reflecting the company's ongoing commitment to improving its internal operations.
Enhancing operational efficiency and space utilization
According to the company's official statement on the Saudi Stock Exchange (Tadawul) website, this step is part of a comprehensive plan aimed at increasing the factory's operational efficiency. Industrial elevators play a pivotal role in modern logistics operations, and this new equipment aims to facilitate the lifting and lowering of pallets containing raw materials and finished products. This infrastructure improvement will enable the company to optimize the use of vertical storage spaces, reducing wasted floor space and accelerating workflow between different levels of the factory.
The strategic and economic importance of the deal
This investment comes at a time when Saudi Arabia is experiencing significant industrial growth as part of Vision 2030, with national companies seeking to automate their operations and modernize their production and storage lines to ensure sustainability and competitiveness. Investing in in-house logistics solutions, such as industrial elevators, is a smart choice for companies looking to increase their capacity without the need for costly horizontal expansions in real estate. Furthermore, improving the flow of raw materials and finished products reduces operating costs in the long run and minimizes the risks associated with manual handling.
Financing and expected financial impact
Financially, Naqi Water Company affirmed its strong financial position, clarifying that the acquisition will be fully financed through its own resources, without resorting to any external financing or bank loans, thus reflecting the company's stable cash flow. Regarding the financial impact of this investment, the company anticipates that the positive effects will begin to appear in its financial statements starting in the second half of 2026, the expected completion date of the project and its commencement of full operation.
Transparency and disclosure of related parties
In accordance with its commitment to the governance and transparency standards mandated by the Capital Market Authority, the company disclosed that this contract was with a related party. It was revealed that a major shareholder in Middle East Machinery Factory Ltd. (MEMCO) owns 50% of its capital and simultaneously owns 50% of Saqa United Group, which is a major shareholder in Naqi Water Company with a 35% stake. This disclosure underscores the company's commitment to regulatory compliance and its dedication to keeping shareholders fully informed of all business transactions.
